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DECISION

APPROVING THE SCHEME ON SOCIO­ECONOMIC DEVELOPMENT OF THE TAM GIANG-CAU HAI LAGOON REGION, THUA THIEN-HUE PROVINCE, THROUGH 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Government's Decree No. 92/2006/ND-CP of September 7, 2006, on the formulation, approval and management of socio­economic development master plans, and Decree No. 04/2008/ND-CP of January 11, 2008, amending and supplementing a number of articles of Decree No. 92/2006/ND-CP of September 7, 2006;

At the proposal of the Chairman of Thua Thien-Hue province People's Committee and the Minister of Planning and Investment,

DECIDES:

Article 1. To approve the Scheme on socio­economic development of the Tam Giang-Cau Hai lagoon region, Thua Thien-Hue province, through 2020, with the following principal contents:

I. DEVELOPMENT VIEWPOINTS

1. To bring into full play the advantages and efficiently tap resources from domestic and foreign organizations and individuals for development investment, soon turning the Tam Giang-Cau Hai lagoon region into a strong coastal economic region of the whole country.

2. The development of the Tam Giang-Cau Hai lagoon region must conform to Vietnam's marine strategy towards 2020 and to the socio­economic development master plans of Thua Thien-Hue province and the central coastal region up to 2020.

3. The socio-economic development of the Tam Giang-Cau Hai lagoon region must satisfy the requirements of sustainable socio-economic development, environmental protection and defense and security consolidation.

4. To combine economic growth with hunger elimination and poverty reduction, constantly improving the people's material and spiritual conditions, raising their intellectual level and attaching importance to human resource development.

II. OBJECTIVES

1. General objectives

To take advantage of all resources for developing the Tam Giang-Cau Hai lagoon into an economically developed region of the province by 2020. To develop tourism as a leading industry in association with sustainable rural development so as to create a considerable progress for the region by 2020, making it a coastal region with strong economic development.

2. Specific objectives

a/ Economic objectives:

- To focus on the strong development of potential industries, promoting economic restructuring toward tourism- fishery- cottage industry and handicraft-ecological agriculture. To strive for a per-capita income equal to 90% of the province's average by 2020;

- To build the Tam Giang-Cau Hai lagoon region into one of ecological tourism, greatly contributing to developing the province's tourism.

b/ Social objectives:

To strive for the targets that by 2015, the secondary education universalization will be basically completed; the rate of trained laborers will reach over 50%; over 90% of health stations and schools reach the national standards and the resettlement of people evacuated for hydroelectric development will be basically completed. By 2020, the poor household rate will drop to below 5%; the rate of malnourished under-five children will drop to below 15% and 90% of households will have access to hygienic water.

c/ Environmental objectives:

- To protect the environment and biodiversity of the lagoon region; to minimize the pollution of surface water;

- To conserve and develop submerged coastal ecological forests; to increase the forest coverage to over 30%;

- Urban centers, industrial complexes and craft villages in the region will have their wastewater treated and their solid wastes collected and treated up to prescribed standards before being discharged into the environment;

- To prevent, avoid and minimize environmental pollution and damage caused by storms and floods.

III. MAJOR TASKS

1. Economic development

a/ To develop tourism into a leading industry on the basis of bringing into the fullest play the advantages of a lagoon and coastal region, connecting with Hue imperial city tourism for comprehensive development of ecological and cultural tourism as well as marine tourism; to create high-quality tourist products and services, forming medical treatment tourism resorts and sports tourism centers; to connect nature conservation zones and craft villages to form marine and lagoon tourism routes:

b/ To reorganize fishery production towards stability and reduced coastal fishing; to constantly modernize fishing, aquaculture and processing equipment with a view to raising economic efficiency, gradually transferring labor to tourism and tourist-service sectors, ensuring sustainable development. To elaborate detailed plans on zones for conservation of rare and precious aquatic species and biodiversity;

c/ To build an efficient and sustainable ecological agriculture suitable to the peculiarities of a lagoon region. To reorganize production towards intensive farming, commodity production and rational exploitation of the advantages of the region;

d/ To establish mechanical engineering stations for vessel repair, concentrated agricultural, fishery and forestry product processing in association with environmental protection. To revitalize and develop cottage industries and handicrafts as well as craft villages in association with tourism development. To build up and develop brands of a number of traditional products of craft villages;

e/ To invest in infrastructure to better serve the socio-economic development, defense and security maintenance.

2. Social development

a/ To complete the resettlement of people evacuated for hydroelectric development in association with reorganization of production according to planning and reorganization of residential quarters. To stabilize production and life and ensure social welfare for people evacuated for hydroelectric development and landslide avoidance;

b/ To raise the intellectual levels of inhabitants in coastal and lagoon communes; to support the vocational training for the poor and people of working age in order to meet the local labor and labor export demands;

c/ To complete the systems of physical foundations for educational institutions and healthcare establishments at the grassroots level. To properly realize the policy of socialization in the fields of healthcare, education, culture, physical training and sports, creating substantial improvement in all aspects of social life.

3. For environmental protection and natural calamity prevention and avoidance

a/ To apply biotechnology to conservation of lagoon aquatic gene sources and protection of natural breeding grounds. To build a nature conservation and museum of the lagoon and submerged zone;

b/ To develop stretches of submerged coastal ecological forests in the estuaries of O Lau (Phong Dien), Ru Cha (Huong Tra) and Bu Lu (Phu Loc) rivers;

c/ To complete the projects on: urgent prevention of Hai Duong coast landslide and erosion and Thuan An port fairway regulation; prevention of Phu Thuan coast landslide and erosion andTu Hien estuary stabilization; Huong. Bo, Truoi, Cau Hai and Bu Lu river bank erosion and landslide prevention, and redress of alluvium deposit at river estuaries, ports and the Tam Giang-Cau Hai lagoon system;

d/ To develop climate and environment observation networks and hydrological forecast systems in service of production development, natural disaster prevention, ensuring good management of sea areas and coastal regions of the province:

e/ To build garbage collection and treatment systems and facilities for treatment of wastewater from industrial establishments, urban centers and tourist resorts, assessing the environmental impacts and supervising projects in operation;

f/ To research, monitor, assess and actively prevent and avoid adverse impacts of headwater reservoir systems on aquatic resources and ecological systems of the lagoon region for sustainable development.

4. Development of urban centers and rural residential points

a/ To boost the urbanization of the Tam Giang-Cau Hai lagoon region;

b/ To build Thuan An and Huong Tra towns and Chan May-Lang Co city; central townships of Thanh Ha, Vinh Thanh and Vinh Hung subregions; urban centers in Dien Huong, Dien Loc, Quang Ngan. Vinh Ha, Loc Binh and Vinh Hien;

c/ To build synchronous infrastructure facilities in fishing villages to early become fishing centers. To formulate projects on conservation, embellishment and promotion of ancient villages or traditional craft villages of Phuoc Tich, My Xuyen, Thanh Tien and Bao La.

5. Socio-economic infrastructure development

a/ In the 2010-2015 period, to prioritize the following projects:

- Road system:

+ To build a new bridge in combination with upgrading Cua Lac breakwater dam; to upgrade and build a road west of Tam Giang-Cau Hai lagoon from Phong Binh (Phong Dien) to Vinh Ha (Phu Vang); to upgrade and broaden national highway 49B from Phong Dien, Hai Duong, Ca Cut bridge. Thuan An, Vinh Hien to Loc Binh and national highway 1A; to build Tu Hien-Cu Du coastal road; to build Ha Trung bridge;

+ To upgrade or build the transversal road linking western areas of the lagoon to national highway 49B; the transversal road linking western areas of the lagoon to national highway 1A, a system of branch roads leading to lagoon communes; to build piers, intra-lagoon and coastal tourist ports.

- Irrigation systems:

+ To build Thuy Yen-Thuy Cam reservoir;

+ To complete the regional irrigation systems of Ninh. Hoa and Dai; to upgrade reservoirs, dams and pump stations for sandy areas: to expand the Quang Cong-Quang Ngan production water supply system. To solidify canals: upgrade sea dykes, eastern and western lagoon dykes. Dai Giang-Thieu Hoa river dykes and field-surrounding and intra-field dykes.

+ To dredge downstream Huong and O Lau rivers and downstream branches of Bo river: the drainage route of Dien Hong-Ha Do. Nga Tu-An Xuan-Quan Cua; to upgrade regional drainage culverts.

- Daily-life water supply systems:

+ To raise the capacity of Hue city, Tu Ha and Hoa Binh Chuong water plants; to build Truoi reservoir water plant;

+ To complete water supply systems for coastal and lagoon regions.

- Social infrastructure development:

+ To complete essential infrastructure facilities in resettlement zones; to build permanent pre-schools and general education schools up to the national standards; to complete the construction of vocational training centers in districts, ensuring that each district will have a vocational training school;

+ To build Vinh Giang, Dien Hai and Thuan An general clinics; to build permanent multi­story buildings for commune health stations with complete equipment up to the national standards. To build a regional hospital south of the lagoon;

+ To build a regional lagoon cultural tourism center in Thuan An.

b/ The 2016- 2020 period

- Road system:

+ To build a new road around Cau Hai lagoon to the west, from Mui Ne-Loc Binh; and Phong Thu flood-avoiding road, and Sia township;

+ To complete transversal roads linking economic zones, tourist resorts and residential quarters with national highways and inter­regional roads;

+ To build Vinh Tu bridge and O Lau reservoir.

- Irrigation system:

+ To complete the regional surrounding dykes, intra-field dykes; the An- Son- Bon and Da- Ha- Thai regional irrigation systems;

+ To further dredge main river tributaries.

- Social infrastructure:

+ To build the Thuy Yen-Thuy Cam water plant;

+ To build 2 upper secondary schools and 1 regional vocational training school.

c/ Defense and security

- To arrange the all-people defense and people's security dispositions, forming firm coastal and marine defense systems;

- To build economic-defense roads, defense works and rear zones, ensuring the mobility and combat readiness for active response to any circumstances; to maintain political security, social order and safety along the coast and at sea.

d/ List of key programs

- Program on construction of infrastructure facilities;

- Program on resettlement of people evaculated for hydroelectric development and livelihood development;

- Program on environmental protection and gene source preservation.

- Program on natural disaster prevention and mitigation.

- Program on tourism development.

- Program on fishery development.

- Program on industrial-cottage industrial-handicraft development.

e/ List of investment priority projects (See enclosed appendix).

IV. PROJECTED CAPITAL SOURCES AND SCHEME IMPLEMENTATION DURATION

1. Capital source for the Scheme implementation: To diversify capital sources for early achievement of the set objectives, including targeted central budget supports; local budget; funds from other programs or projects; and capital from other economic sectors.

2. The Scheme implementation duration: 2010-2020.

V. SOLUTIONS TO SCHEME IMPLEMENTATION

1. Capital raising solutions

a/ To prioritize state budget funds for the construction of technical infrastructure, aiming to create a breakthrough in socio-economic development. The use of investment capital must bring about the highest efficiency of key irrigation, road, electricity, water, hunger elimination and poverty reduction works;

b/ To step up the socialization in the fields of education, healthcare, culture and sports, technical infrastructure of industrial complexes and environment in order to attract investment capital;

c/ To actively call for investment, diversifying form of capital raising; to prioritize the attraction of foreign investment capital in order to take advantage of modern technologies and advanced management skills, to expand the capability to access the regional and world capital markets;

d/ To propagate, mobilize, call on and encourage communities of locals living overseas as well as other localities throughout the country to invest in production and business development, contributing to the construction of their native place.

2. Human resource training solutions

a/ To step up training to raise the capability and professional qualifications of cadres and civil servants in the region; to consolidate the apparatus and raise the capacity of specialized agencies to meet the administrative reform requirements;

b/ To encourage and support enterprises in training so as to raise the quality of their workers. To step up cooperation and alignment between training establishments, consultancy agencies and enterprises in training and use of regional labor.

3. Scientific-technological solutions

a/ To intensify the application of scientific and technical advances and adopt mechanisms and policies to encourage transfer of scientific and technical advances, aiming to raise the output and quality of commodity products, particularly agricultural, aquatic and marine products;

b. To intensify agricultural and fishery extension so as to assist people in quickly restructuring crops, husbandry and aquaculture for higher productivity.

4. Market solutions

a/ To step up trade promotion, building commodity products with brands well-known on the market;

b/ To support small- and medium-sized enterprises in production technologies and information on the investment environment for quick access to regional and world markets.

5. Solutions to environmental protection

a/To prioritize investment in facilities to treat wastewater from industrial parks, urban centers, craft villages and tourist resorts in order to combat environmental pollution;

b/ To conserve and develop submerged coastal ecological forests, aiming to create environmental scenery, protect marine and coastal resources and prevent storms. To develop green tree strips in association with residential quarters, aiming to improve the living environment;

c/To adopt regulations and detailed programs on environmental protection for each locality and provide specific guidance so that all people can participate in environmental protection; to encourage enterprises to buy environment insurance;

d/ To strictly observe the law on environmental protection; to implement program on protection of lagoon resources; to build environment observation systems, garbage treatment systems and garbage landfills up to general standards; to issue regulations on waste management and pollution control;

e/ To reinforce cadres knowledgeable about environmental matters for good administration, detection and settlement of environmental problems.

Article 2. Mechanisms and policies applicable to the Tam Giang-Cau Hai lagoon region

1. To provide targeted supports from the central budget right in 2010 for Thua Thien-Hue province to realize the Scheme. To prioritize investment in important infrastructure projects on roads, irrigation, daily-life water supply, hunger elimination and poverty reduction, natural disaster prevention and combat, and environmental protection.

2. Investment projects in the Tam Giang-Cau Hai lagoon region will enjoy high preferential mechanisms and policies applicable to areas meeting with socio-economic difficulties under the Investment Law and relevant laws.

3. The following investment projects in the Tam Giang-Cau Hai lagoon region will enjoy an enterprise income tax rate of 10% for 30 years:

- Investment projects on solar or wind power energy;

- Projects on conservation and development of aquatic and marine gene sources.

4. Domestic enterprises of different economic sectors having production or business investment projects in the Tam Giang-Cau Hai lagoon region will be entitled to various credit preferences under current state regulations on development investment credit.

Article 3. Organization of implementation

1. The Thua Thien-Hue province People's Committee:

- To organize the implementation and take full responsibility for the effectiveness of the Scheme while closely coordinating with concerned ministries and branches in the implementation;

- To establish a Steering Committee for implementation of the Scheme on socio­economic development of the Tam Giang-Cau Hau lagoon region through 2020;

- To direct the integration of capital sources, programs and projects in the localities for implementation of the Scheme; at the same time to organize investment promotion, calling upon domestic and foreign investors to participate in the implementation of the Scheme;

- To monitor, inspect, oversee and review the situation and annually report on the Scheme implementation results to the Prime Minister.

- To assign the Ministry of Planning and Investment to assume the prime responsibility for, and coordinate with the Ministry of Finance in, allocating targeted support capital sources in annual plans for the Scheme implementation.

- The concerned ministries and branches shall, according to their respective functions and assigned tasks, coordinate with Thua Thien-Hue province in effectively realizing the Scheme; and at the same time incorporate their respective relevant programs and projects in the areas covered by the Scheme.

Article 4. This Decision takes effect on the date of its signing.

Article 5. The Chairman of Thua Thien-Hue province People's Committee, ministers, heads of ministerial-level agencies and government-attached agencies, and concerned agencies shall implement this Decision.

PRIME MINISTER

Nguyen Tan Dung

APPENDIX

LIST OF PRIORITY INVESTMENT PROJECTS IN THE 2010-2015 PERIOD WITH A VISION TOWARDS 2020
(To the Prime Minister's Decision No. 1955/QD-TTg of November 27, 2009)

PART I. STATE BUDGET

I

Road works

1

Cua Lac bridge and breakwater dam (linking national highway 49B-western lagoon road)

2

Ha Trung bridge and road (linking national highway 49B-western lagoon road)

3

Upgrading and expanding national highway 49B from Phong Hoa-Hai Duong-Ca Cut bridge-Thuan An-Vinh Hien-Loc Binh to national highway 1A (prioritizing Thuan An-Tu Hien section)

4

Vinh Tu bridge and road (national highway 49B-western lagoon road)

5

Upgrading and expanding Thuan An cargo port

6

Upgrading and building the road west of Tam Giang-Cau Hai lagoon from Phong Binh (Phong Dien) to Vinh Ha (Phu Vang)

7

Upgrading and building transversal roads linking the provincial road west of the lagoon with national highway 49B

8

Transversal roads linking the western lagoon road with national highway 1A

9

Building a new road around Cau Hai lagoon

10

Upgrading and building communal branch roads

II

Irrigation

1

Thuy Yen-Thuy Cam reservoir

2

Irrigation systems of Ninh, Hoa and Dai areas

3

Irrigation systems of An, Son and Bon areas

4

Irrigation systems of Da, Ha and Thai areas

5

Building and upgrading sea dykes and lagoon dykes

6

Irrigation and drainage systems in the regions downstream O Lau river

7

Upgrading and solidifying region-surrounding dykes and intra-field dykes

8

Riverbank landslide prevention

9

Dredging rivers and lagoons for flood drainage

III

Water supply

1

Thuy Yen-Thuy Cam water plant and water supply systems

2

Clean water supply systems for communes east of Tam Giang-Cau Hai lagoon (phase 1)

3

Inter-commune daily-life water supply networks

IV

Fishery

1

Projects on Tu Hien and Thuan An fish port (phase 2)

2

Building vessel anchorages and moorages, wharves

3

Aquaculture infrastructure: concentrated wastewater treatment systems, water supply and drainage canals, roads leading to aquacultural zones, pump stations

4

Specialty aquatic gene sources and natural breeding ground conservation zones

V

Agriculture and rural areas

1

Projects on development of rural infrastructure (inter-village roads, environmental sanitation, marketplaces, resettlement infrastructure, etc.)

2

Afforestation

3

Project on plant varieties and animal breeds of grade I

VI

Industry, cottage industry and handicrafts

1

Industrial complex and craft village infrastructure

2

Projects on treatment of solid wastes and wastewater from industrial parks, industrial complexes and craft villages

VII

Healthcare, education, culture

1

Restoration of cultural, historical and revolutionary relics

2

System of grassroots cultural institutions

3

Program on building schools up to national standards

4

Construction of regional health centers and general clinics

5

Building, upgrading commune health stations

6

Building vocational training centers

VIII

Tourism and services

1

Infrastructure in tourist attractions and resorts

2

Regional cultural-tourist centers

3

Building lagoon tourist vessel wharves

IX

Construction

1

Construction planning

2

Construction of urban infrastructure

X

Public works

1

Projects on resettlement of people evacuated for hydroelectric development and people evacuated from areas affected by natural disasters

XI

Environment

1

Natural disaster observation and warning systems

2

Formulation of plan on zoning the coastal zones of Thua Thien-Hue province for general use

3

Formulation and implementation of project on general management of coastal zones -phase 2

4

Waste-collecting and -treating systems

5

Medical waste treatment

6

Natural disaster observation and warning systems

7

Construction of roads leading to 0 Lau, Ru Cha and Bu Lu submerged conservation zones

PART II. ODA CAPITAL SOURCE

I

Agriculture and rural areas

1

Projects in support of poverty reduction and socio-economic development in Phu Loc, Phu Vang and Quang Dien districts

2

Projects on sustainable fishery development

3

Afforestation

4

Sandy region irrigation systems

5

Commune daily-life water supply systems

II

Healthcare, education, culture

1

Improvement of school material foundations

2

Improvement of grassroots medical establishments* material foundations

3

Support for development of human resources for information technology and software technology

4

Support for management capacity building

III

Environment

1

Construction of a central coastal nature conservation zone

2

Conservation of biodiversity of the Tam Giang-Cau Hai lagoon region

3

Construction of a submerged land conservation zone

4

Raising the adaptability to climate change

5

Investment in equipment and vehicles for oil spill incident response, rescue and salvage

PART III. LIST OF PROJECTS CALLING FOR INVESTMENT

I

Tourism-services

1

Construction of coastal and lagoon tourist resorts

2

Thuan An-Tan My-Phu Thuan eco-tourism resorts

3

Craft village or ancient village tourist zones

4

Projects on saltwater-submerged eco-tourism zones

5

Project on Tam Giang-Cau Hai lagoon brackish water eco-tourism zones

6

River, sea and lagoon transportation business

7

Post and telecommunications, Internet service projects

8

Construction of Dien Loc special-use port

II

Industry

1

Phu Da industrial park

2

Quang Vinh industrial park

3

Projects on industrial complex and craft village infrastructure

4

Projects on agricultural, forestry, fishery production and processing

5

Projects on fine-art handicraft production

6

Projects on exploitation and processing of minerals (titanium, sand, crystal, etc.)

7

Garment factories

8

Ship building

9

Pottery, porcelain and glassware factories

III

Agriculture

1

Projects on plant and animal breeds

2

Projects on development of plant and animal breed production

3

Development of aquaculture, aquatic product exploitation and processing

IV

Public works

1

Project on construction of new urban centers

2

Program on housing development

3

Civil works of people

Note: The locations, sizes, land areas, total investment and capital sources of these projects will be calculated, selected and specified in the period of project formulation and submission for approval, depending on the demand, budget and resource mobilization capacity in each period.